Better than your average Forex Signal Service

Live Trading Rooms frequently draw comparisons to trade signals services, with many wondering whether the two even differ. Indeed, I myself have often been asked at financial trade fairs and events whether the product I am championing differs if any way from the mechanical signals which have existed within the industry for years. Whilst the comparison is understandable, I consider the two to share a greater number of differences than similarities.

Distinguishing the Live Trading Room from Trade Signal Services

In my eyes, the main difference between the Live Trading Room and a trade signal service also happens to be the former's greatest strength. Whilst signal services routinely rely upon mechanically derived entry and exit signals, Live Trading Rooms typically rely upon the knowledge and experience of professional traders. Whilst the benefit of mathematical equations and formulas in establishing market direction is undeniable; notably in the field of Technical Analysis; the data points that these tools provide often fails to address the more human aspects of market movements. It would be naive to assume that the information gleaned through such methods could be removed from one's trading entirely, however it is equally important to realise that this data alone offers little benefit without an understanding of the underlying meaning.

Developing Trading Knowledge through your Live Trading Room

This is where trade signal services tend to fall short. In relying solely upon mechanical data, the entry and exit signals offered through these services provide little understanding of how and why signals are elicited. Whilst this does mean that a novice trader would be able to deploy the resultant signals within their own trading, there is little opportunity for knowledge development. With many signal services raising hundreds of signals a week, the lack of understanding about their composition means that the trader is forced to blindly enter the trade with little awareness of how it could progress.

Live Trading Rooms on the other hand incorporate both technical data and human experience into the information conveyed. By enabling professional traders to share their knowledge of the financial markets, Live Trading Rooms ensure that users benefit from trade signals which have been prefiltered to avoid trades which are likely to result in losses. At the same time, the trading room's host will often provide a realtime analysis of both the markets, and their thoughts on such considerations as developing price patterns. By introducing the room's users to such concepts whilst enabling them to emulate the trades raised through the room, the Live Trading Room model ensures that followers can conduct more informed trades whilst developing an understanding of how market movements occur. The ultimate outcome is a 'win-win' situation in which the trader can comfortably develop their own trading ideas whilst benefiting from the successful trading of others.